Oil India partners with NRL to transport additional petroleum products

Oil India on Wednesday announced it has signed a long-term agreement with its material subsidiary Numaligarh Refinery (NRL) for the transportation of additional petroleum products through the Numaligarh-Siliguri Product Pipeline (NSPL) following the commissioning of the Numaligarh Refinery Expansion Project.

A day after the announcement, shares of Oil India were trading 0.13% higher on Thursday.

Oil India currently evacuates 1.72 million metric tonnes per annum (MMTPA) of petroleum products through NSPL which is delivered to NRL’s marketing terminal in Siliguri. NSPL acts as a crucial pipeline for NRL to evacuate products to the Siliguri marketing terminal from where it is distributed to demand centres in eastern and north India.

The agreement between OIL and NRL will be effective from the date of commencement of augmented pipeline operations for 25 years.

NRL is executing the Numaligarh Refinery Expansion Project (NREL) which will grow its capacity from 3 to 9 MMTPA to meet the Hydrocarbon Vision 2030. In December 2020, Oil India and NRL signed a memorandum of understanding (MoU) in which Oil India agreed to make investments to enhance NSPL’s capacity from 1.72 MMTPA to 5.50 MMTPA by installing additional booster pump stations and other facilities.

Earlier this week, the company announced an 18% year-on-year (YoY) growth in its net profit for the fourth quarter of the financial year 2024 at ₹2,333 crore.

For FY24, revenue from operations fell 12% to ₹36,304 crore while total income declined 10% to ₹37,646 crore. Net profit fell 29% to ₹6,980 crore during the year.

The company announced a bonus issue of one equity share for every two existing equity shares held. The board also recommended a final dividend of ₹3.75 per equity share (pre-bonus).

Shares of the company have risen by nearly 72% since the beginning of the year. The stock has gained over 141% in the last one year.